Leong Sze Hian -
How many years of reserves does the National Kidney Foundation (NKF) have? Well, going by what is reported, it is hard to tell.
Last year, in November 29, 2009, the chairman of the NKF, Mr Gerard Ee [picture left] was reported to have said: “The charity has enough reserves to last for about five years.”
Its annual report for 2010 says that the current reserves are projected to last for about seven years, adjusted for inflation and projected capacity increase.
On 8 July 2010, NKF’s chief executive Janice Tay said: “[Based] on the calculations that we have on our reserves, our current reserves, we could last up to four years….if there were no donations coming in”
Confused? We are.
I refer to the article “NKF short of money and nurses” (ST, Jun 5).
Even if NKF continues to have an annual net deficit of $0.9 million like last year, its surplus of $9 million for the previous year may be enough to cover about 10 years of deficits.
The main reason for its investment income falling from $15.4 million in 2006 to $6.6 million last year, may be because the global investment markets for the last year, was the worst in the last 60 years or so, due to the financial melt-down.
With reserves of $247 million, if the rate of return on its reserve funds increase by just 0.4 per cent per annum, compared to the last year, the increased investment income may be enough to offset the annual deficit of $0.9 million.
Another way of looking at it is that the $247 million reserves may be sufficient to cover 274 years of its annual $0.9 million deficit.
With $247 million reserves now, compared to the $263 million in 2005 when the NKF scandal unfolded, I understand that the NKF is still the charity with the largest amount of reserves.
As its total funds is $278 million, if we include the Restricted Fund of $26 million and Endowment Fund of $4 million, does it mean that it now actually has more funds than in 2005?
With many charities still reeling from the economic recession last year, I feel that there may really be no real need for NKF to sound the alarm bells now to appeal for more donations, given its relatively sound financial situation.
Its annual report says that the current reserves are projected to last for about seven years, adjusted for inflation and projected capacity increase.
In my view, this reserves ratio may be somewhat pessimistic, as it assumes that that there will be zero donations for seven years.
Since the bulk of NKF’s funds – $200 million are managed by two fund managers on a capital guaranteed mandate – is it also assumed that there will be no investment income for seven years?
Given that it had $18.5 million donations for the last year, in the midst of Singapore’s worse economic recession, and that what perhaps riled Singaporeans most when the NKF scandal broke, was the issue of whether the NKF had three years of reserves or 30 years of reserves, I would like to suggest that the calculation of its reserves ratio be further clarified to include projected donations and investment income in the future.
Finally, as the current financial year ended on 30 June 2010, surely there are already some indication as to whether this year’s investment income, donations and net operating deficit, have increased or decreased compared to last year.
I am somewhat puzzled as to why NKF told the media that it was short of money and in the red in June, only to turn into the black just one month later, with a surplus of $5.8 million which is more than six times the previous year’s $0.9 million deficit?
So, how long actually can NKF’s reserves last – 5 years (Nov 29,2009), 4 years (Jul 8, 2010), 7 years or longer?
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Picture from The Straits Times.
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no wonder more and more people stop donating after the durai, there is never a correct figure, only pluck from the air and that’s it, typical MIW way of telling their “truth”
print out every copy and show them lor…
nothing wrong to share the news since strait times not sharing. maybe off budget coz our government have to spend their billions in their own interest ma…
haiz…
This Gerard Ee is the same Gerard Ee who introduced “distance-based fares” for public transport.
He has learned to suck everyone dry – from commuters to donors.
What a disgrace to the good name of his father, Ee Peng Liang.
Gerard Ee – No longer trustworthy….
Anything that comes out from his mouth is now in questionable…
Liar, lying like the PAP.
Every decent singaporean family should be issued with a FREE COE that is non-transferable.
The spoilt brats of the rich and powerful must bear the SOCIAL COSTS of traffic jams by having any additional COEs priced at a minimum punitive level in order to bring about more equity among citizens.In a way,it helps in the redistribution of incomes and indirectly closing a samll portion of the gigantic income gap here.
gerard ee says 1 words when he took over from durai..
he utterred:
don’t worry bout the noise outside..it will go away…
now who is makin noise here?
Since long ago, I has decided not to trust him – empathy is absent and lacking in him : those who have been following and observing his deeds and actions will totally agreed that he ought ” to be transported ” elsewhere and rid of.
From Automobile Association to running a Charity Organisation – and all due to his father’s social charity work, which he “took over” on his father’s passing.
There are quite a few scions from renown families who slipped into position of influence despite having blips in their personal track records.
It is knowing how to stroke the back of the horse, if you need it to carry you forward.
Lets see how the Singapore Public is being stroked if they our hard earned funds, or our vote at the polls.
Hoard money; screw public for more money to fund current expenditure.
“Uniquely PAP”.
The issue is how much reserves does any organisation need. Is the NKF saying that it can run into a bad patch lasting five yrs where there is no income?
Even in the worse case scenario, there will be some income, while NKF adapts to new environment.
With Gerard Ee at the helm and been a government man let NKF now run without the support of Durai supporters. Afterall will Gerard Ee be transparent from now on the accounts of NKF? It is only a change of master. But is the present master any better?
Yes Gerard Ee is no longer trustworthy. Why? Judge for yourself what he says about the PTC approval of the recent public transport hike. He is indeed a government man and truly a PAPian.
A leader of an organisation that indulge in double-talk is not to be trusted.
Save donations for yourself, don’t give to NKF.
This underlies my whole frustration with the main stream media. If it is true that they actually have more reserves than 2005, the media should report the other side of the story and not an aunty CEO with a sob story that they are poor.
It brings to mind a story that a friend borrowed money from another friend and a few years later buys a condo and a luxury car and does not pay back the loan claiming he is low on cash.
they always want more even if they have money. they cry foul to seek attention and get new donation.
have not we seen it all?
This agent of the MIW should do a self reflection or he’ll regret too late like the late Ong Teng Cheong.The MIW mastermind unpopular policies and get runners to implement it.To him a word of advice–Beware of the repercussions to come and don’t sell your soul for fame and gains.Life is short,do good while you still can.
Gerard Ee used to be a good man, like his father. In recent years, I guess he has been retarded to a ruling party man. Being the top man in the Public Transport Council, he is oblivious to the hardships and problems ordinary citizens face daily, coming out with silly justifications for operators of transport services.
His father gave him a golden heart, he turned it into an evil heart.
I used to have respect in abundance for his father, the late Mr Ee Peng Liang, and Gerard in the past. No longer is this so. Ever since Gerard has been rewarded with important positions, his priority in helping ordinary people has somehow switch allegiance to his political master, and not the poor people.
What a letdown. This calls for mourning.
Singaporeans are stupid what. Baichi. Whitewashed. Brainwashed. Baichilized.
TT Durain must have been so creative in his book records that all who took over the helm are still reeling in the shock of the accounging mess created.
Thus explain the conflicting views of reserves accounted.
The PM earns more than five times the President of the United States. Perhaps he can donate half of it to NKF. That will make up the shortfall. And if the Cabinet does the shame, then NKF don’t need to worry, right?
Mr Ee also must donate half of his fortune, put his money where his mouth is.
One of the many “mysteries” in SIN city…
How much reserves NKF has left
How many YOG tickets are for sale
How many PRs are…etc
We should ask Durai or better ask him to come back.
All he needs is $600K pa, a gold toilet and lots of peanuts.
I am sure we can give him that.
He of course will run NKF like a magician.
What kind of person would hand out Ang-Pows (of 50, 100) to old, elderly or even handicapped citizens from the PUBLIC coffers and get paid 7000-12000 per day (depending on whether you go by 200-360 days), and say they are doing PUBLIC service?
ONLY THE PAP FREAKING BLOOD SUCKERS.
A bit off-topic.
NKF under T T Durai is no different under PAP Gerard Ee. Why donate to such an organization when you know TC and GIC have billions and yet do very little for the poor or returning the retirement money to the poor elderlies in Singapore. There is no difference between their attitude and expectation. Have you seen enough of the leopard spots of the PAP? Or you have to wait till all charitable organizations indirectly controlled by the PAP?
Let’s sing:
“how many road must a man travel
before he can see the shit of PAP!”
Lots of skeleton still in the closet of NKF!! Remember the 6 nos. of Mercedes
Benz in the NKF compound when Durai was
the CEO??
Who were making use of the cars in the
daily affairs?? What happened to the cars??
All these swept under the carpet??
Dear Knowledgeable singaporeans,
could one of you provide answer to this question?
1. for a GLC, does any cent from the company go to the G? So, how does this work? Or is this a forbidden knowledge for the public.
if you don’t know means you don’t know.
If even a Finance Guru like Mr Leong is puzzled by NKF financial status, i wonder which so-called 1st world singaporean is not puzzled?
Well done singaporeans. You are great.
is Gerard a grassroots leader?
such a talent, sacrifice for the people so selflessly and with such integrity and honesty. Totally trustable person hor?
So, his health better already not?
What a ultruistically honest guy.
Dont ever want to donate NKF anymore. With such a huge reserves it can last more than 7years. I am disgusted with the NEW NKF, whats the diff from TT DURAI ERA?
What I am disgusted is that in the past when I was in secondary school, NKF would ask we as students to help them to do volunteer work and to help the weak by asking us as students to sell items for them to raise funds. I remember the entire school was dispatched at day to entire part of singapore. They asked us to sell pens and the amount obtained was obviously in hundreds of thousands at least. This multiplied by the number of schools. Wow. They want to return to such system? Stop exploiting the students.
After NKF peanut, i stop donating to the greedy. Now only donate to poor old folks selling tissues and the 4 horse run guanyi temple.
Actually hor, which singaporean, i mean non-elite, mere mortalites know :
1. how much money donated by the public to NKF?
2. where the money go to ? eg. spent on what? invested in what , if any?
I personally believe that one should just believe based on believe in order to believe so as to believe what can be believably believed in the name of belief.
So sorry to inform NKF that I have blacklisted them FOREVER.
Singaporeans may have a good/soft heart but they are sure dumb. Our top 30 politicians are paid at least $70 millions annually, some just for sitting there, others to come up with stupid slogans/frog tales, some to put out “freak” excuses, some don’t even bother to give excuses. Does NKF annual operating costs come close to half this, i.e. $35m? If the pay to these top 30 individuals is just reduced by 10%, which they can definitely afford it, then charities like NKF would have additional $7m without having to squeeze more from the general public. The fact is that the more burden of social costs borne by the public, the more money the garhem can divert PUBLIC money to things like hosting expensive events like YOG. Like said, Singaporeans need to get the perspective right.
(PS. Note, I am not saying we should STOP helping the needy. Nowadays, I support any organisation that doesn’t get a cent from the Community Chest/NSS–and there are many out there, many not less noble than NKF.
Incidentally CCS required $52.6m last year for 69 charities helping 340,000 needy {from Wikipedia}. Concurrently our top 30 MIWs get $70+ millions –> read, $70m < $52.6m while 30 << 340,000. I definitely don't believe the shit that the income gap IS narrowing,… well maybe in the next 10,000 years.)
@Sumikio, 10 July 2010
Dear Knowledgeable,
Why YOG not incorporated and become a private/GLC venture? Then any budget overrun to the tune of $280m must be raised by the organisers/YOG Board and not rely on hand-out using public funds. Cannot work this way, is it? You know or not?
Money Not Enough, more the merrier, all these top guys from NKF are the Blue Eye Boys of MIW who were picked to take over NKF and suck the well wishers’ donations to invest in their master’s appointed investment funds. I stop donating to all these govt appointed organisations after learned that many commitee members were govt appointed who were paid thru money donated by the people.
@Sumikio, 10 July 2010
U may be right, if the GLC’s corporate tax is least than $1, then nothing goes to G. In that case, better dump shares in that GLC fast.
It is a state responsibility to address these social issues. If I contribute to NKF or whatever, I willingly take over part of that responsibility from the state for which I am reluctant to given that I pay income tax & other indirect taxes, I pay market value for HDB housing, market price for medical needs, market rates for public transport etc etc. There is not the notion of state welfare when a person is physically fit and economically active. If the state knows only how to milk the citizenry when they are able bodied and contribute to the state coffer, the state should shoulder the responsibility & social burden when one becomes sickly and incapacitated. Sadly, this is how we are conditioned to think these days where we know the price of everything but the value of nothing. This place is run like a corporation, to each his own, totally profit centered. Note that in the past you call to donate to NKF Charity show, you pay telco charges per call and you pay GST for that call.
Strange that so many here had thought GE was a good man. Pray tell on what basis do you make such a statement or hold such a notion? Is it because of his father, who was known as Mr. Charity? Some do not seem able to detach the two entirely different persons in Mr Ee senior and Mr Ee junior.
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Name me one thing that the junior Ee had done that is worth crowing about?
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He had been living off the laurels of his father, being rewarded for the good works of his father and is continuing to live off the good name of his father. Take all these away and ask yourself who the real Gerard Ee is? What has he done that is of note? What has he done for the people of Singapore that his father so loved and cherished?
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Let us be discerning and not get carried away to think that the fruits of a tree will grow into the same tree that bore it. Each fruit must be judged on its own.
We thought Gerald is a pragmatic and trustworthy man, until we heard he was the man behind the new transport scheme, which is a devilish way to increase fares legitimately.
All the goodwill he garnered just flow out to the drain. Mm, people just change overnight? or he is a wolf in sheep’s skin all along.
Wasn’t this the guy who was tasked to explain to the public why PTC approved the transport fares hike just before the global recession in 2008? His TWO (2) reasons then were:
1. Singapore’s economy was doing well then AND everyone was getting good bonuses that year. (He did not explain how PTC or the garhem or the transport coys helped those of us in private sector get those bonuses – working late, clocking overtime, losing more life balance, sucking up clients, etc.)
2. The percentage of income Singaporeans spent on transportation was X. Since the wages/bonus of Singaporeans had gone up, so to maintain X, the transport coys are entitled to increase fares. X was also in-line with other countries (mainly expensive ones). He did not explain why X was a benchmark, or why X shouldn’t decrease by increased productivity and efficiency of the transport companies.
Given such logic & thick-skinned, I wonder why ppl think he was ever serving the public interest first. Maybe becos of the earlier NKF affair, where all he needed to do was go in with a sledgehammer and make the bad guy look worse. Tour de force indeed.
Let city harvest take over NKF, since they have the financial means to manage the operations. That will help the the image of city harvest.